Id: 1211221 Date: 24.01.14
Good Hopes for Global Outsourcing
Good Hope is a chain of nine hospitals in California. As Good Hope want to minimize the operational cost without avoid laying off workers, so they can outsourcing to India because of India outsourcing sector has been growing where labor cost is smaller than others country and availability of educated people. Good Hope could change their two management people and recruit new skilled people who can forecast the problem and ability to minimize the problem quickly and consider the others factor.
The specific risks that Good Hope faced and potentially faces in outsourcing the activities to India are-
Financial costs of outsourcing were higher than expected.
Processing of accounting and other data more complicated than expected
BangSource is less efficient in answering customer inquiries, which resulted in more telephone time and phone calls to address customer needs Fluctuations in the rupee and dollar exchange rate inflated the cost of BangSource
Late in performing promised services due to shortage of workers
They Should not provide all the work to BangSource, focus on the others outsourcing firm also and spend enough time in beginning establishing a relationship with outsourcing firm and figure out the boundaries. Good Hope needs to collaborate closely with BangSource in co-development and co-design activities.
It is very harmful for California economy and worker. Unemployment rate will be increase roughly, crime rate also increase, poverty goes up and economic infrastructure slow down. California can reduce the pay rate per hour and create a obstacle to company those are want to global outsourcing.